Primedia - Acquisition of remaining 14% of 94.7 Hi
PMA PMAP PMN
PMA
Primedia - Acquisition of remaining 14% of 94.7 Highveld Stereo to boost
Primedia"s earnings
Primedia Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/003355/06)
Share code: PMA & ISIN: ZAE000035119
Share code: PMN & ISIN: ZAE000035127
Share code: PMAP & ISIN: ZAE000080529
("Primedia" or "the Company")
Acquisition of remaining 14% of 94.7 Highveld Stereo to boost Primedia"s
earnings
Primedia Limited (Primedia) today announced that it had received approval from
the Competition Commission on Wednesday, 13th June 2006 to purchase the
remaining 14% of 94.7 Highveld Stereo, which it acquired from Mineworkers
Investment Company (MIC) in November 2005. In addition, ICASA has approved the
transaction, making the deal unconditional. Primedia will pay MIC R11, 5 million
in cash and issue 6,0 million `N" shares. Importantly, issuing the shares to MIC
will raise MIC"s economic stake in Primedia from 16, 1% to 18, 2% making MIC
Primedia"s largest shareholder. MIC also exercises joint voting control over
Primedia.
Based on 94.7 Highveld Stereo"s continued strong performance for the year ended
30 June 2006, the annualized pro forma impact of the transaction in the current
financial year would have been 5 cents per share, or, added 5,3% to last year
headline earnings per share of 95 cents. However, the transaction will only have
a financial impact on Primedia"s year ended 30 June 2007.
Commenting on the transaction, Primedia CEO William Kirsh said: "We continue to
add value to shareholders by achieving earnings-enhancing acquisitions. This is
a major milestone for us, as we now control 100% of the cash flows of our most
valuable asset. We will also materially benefit from the STC cash trap that was
part of the legacy shareholding structure".
19 June 2006
Sandton
Sponsor; Investec Bank Limited
Enquiries:
Brunswick 011 268 5750
Rob Pinker 083 326 7794
Gareth Sharp 083 287 3180
Date: 19/06/2006 03:20:12 PM Produced by the JSE SENS Department
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